Netflix (NFLX) Gains But Lags Market: What You Should Know
In the latest trading session, Netflix (NFLX) closed at $499.24, marking a +0.03% move from the previous day. This change lagged the S&P 500's 0.15% gain on the day.
Prior to today's trading, shares of the internet video service had lost 0.81% over the past month. This has lagged the Consumer Discretionary sector's gain of 0.15% and the S&P 500's gain of 0.58% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release. On that day, NFLX is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 98.11%. Meanwhile, our latest consensus estimate is calling for revenue of $7.32 billion, up 19.02% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.44 per share and revenue of $29.72 billion. These totals would mark changes of +71.71% and +18.88%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.68% higher within the past month. NFLX is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, NFLX is holding a Forward P/E ratio of 47.81. This valuation marks a premium compared to its industry's average Forward P/E of 13.69.
We can also see that NFLX currently has a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.31 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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